Homeowners in Newcastle are taking advantage of lower interest rates and remortgaging their homes, according to a report.

Chartered surveyors Allied Surveyors has seen its instruction levels rocket over the past three months.

During March, the number increased by up to 46pc on the same period last year.

Andrew Craig, of Allied Surveyors based in Newcastle, said: "Many homeowners took advantage of the lower interest rates of the last two or three years and have been on a fixed or capped rate ever since then.

"Now we are finding that as the fixed and capped terms are coming to an end, people are looking to re-mortgage their property so they can switch to a more advantageous rate."

Most mortgage and lending companies require a valuation report and surveys to be carried out on a property in order to authorise a mortgage.

According to figures supplied by the Council of Mortgage Lenders, remortgaging accounted for 38pc of gross lending in February, above its historic level of 30 pc. Remortgaging is likely to remain popular for the foreseeable future, as the discounts available continue to bolster the popularity of variable rate loans, despite the attractions of locking onto fixed rate mortgages.

Allied Surveyors' business development director, John Archbold said: "For homeowners who are just coming to the end of a fixed or capped rate mortgage, now is the time to take stock of their finances and see what the market has to offer."